I am working as per Modi’s formula on mobilising funds: Railway Minister D V Sadananda Gowda

If foreign investors are allowed into operations, then they will start making policies for railways. I have no plans to revisit this in future as well.

Expectations are high from Railway Minister DV Sadananda Gowda as he prepares to mend things that have gone wrong with the struggling railways. In his first postbudget interview, Gowda tells ET's K R Balasubramanyam that he first needs to work on the image of the railways to attract private sector investment. Edited excerpts:

How different is your budget?

Every time a new government came, it announced new initiatives that automatically halted the projects rolled out by the previous governments.

As a result, neither the old initiatives nor the new ones are delivered to the people. We have departed from this practice, not gone for new projects and have instead prioritised the ongoing projects.

I think this is a new way of doing things.

Critics say you have made the right moves, but not set timelines on crucial things such as PPP or FDI.

Be it public-private partnership (PPP) or foreign direct investment (FDI), we need to first win the trust of investors in Indian railways. There is not much trust left now. A private investor would come forward to invest his money only if he is sure of earning good revenue and returns on his investment. We need to first build confidence in them. They should come to regard railways as a good investment opportunity. We are moving in that direction.

What is your logic behind keeping railway operations out of FDI?

I am against allowing FDI in operations because I believe operational control should rest with the railways. If foreign investors are allowed into operations, then they will start making policies for railways. I have no plans to revisit this in future as well.

What is the status of FDI proposal?

There is a Commerce Ministry circular banning FDI in railways. The Commerce Ministry has amended this and sent it to the Ministry of Finance, which will vet the same and bring it before the Cabinet for approval.

What is your approach on developing new railway stations?

We are thinking about throwing open some greenfield stations like Byappanahalli in Bangalore for development through the PPP route. We can think of awarding them on a build-operate-transfer basis on a 30-40 year contract. The investor can earn revenue by running malls, hotels, food plazas, theatres, parking lots etc. It will help us create assets for the railways quickly. We are thinking of trying this out on a pilot basis first.

How hopeful are you about operating bullet trains in India?

What people who tour Japan or China see in wonderment is a bullet train. A country's image depends on the way it has built its transport infrastructure with a blend of modernity. Every country focuses on trains for technology adoption. We, too, should compete with other developing countries. We cannot allow technology to bypass Indian Railways by saying that we don't have money. There are private players. There are investors such as Japan International Cooperation Agency interested to invest in our bullet train project. We will take their assistance. We will get a portion of the revenue generated and the rest will go to the investor. It will achieve twin objectives - a world-class asset is created and we get a share of the revenue, too. It is a win-win situation.

Where are we on the Diamond Quadrilateral?

The first stretch of the diamond quadrilateral may take about 4-5 years to come up. The financial viability of the Mumbai-Ahmedabad stretch is under study now. Once that stretch begins, the rest will follow rapidly. We will need to import technology.

There has been talk of plans to restructure the Railway administration. Can you explain?

I intend to separate policy making from implementation. Policy makers should think in new directions. It should not be that if an implementing agency is unable to implement something, the policy itself is changed. What I plan to do is not to take someone's powers away, but to empower officials below the Railway Board to take decisions. For example, if railway over-bridges and under-bridges are to be built, the proposals today go all the way to the Board. If I delegate the same powers to general manager or divisional railway manager, things move fast. Delegating powers to officials below is also part of the change I am thinking about.

Why did you roll back the revision in suburban rail fares in Mumbai?

I think we need to view regular commuters differently from those who travel by train occasionally. That is why we continued with the same concession to regular pass holders. But I agree with the view that compared to buses, what we charge is a small fare.

Is it true that the Shiv Sena is not happy with the railway budget?

I don't think so. In fact, railway connectivity is quite high in places where the Shiv Sena has a strong presence. I have not come across any complaints from them. Every day I meet the Sena MPs in Parliament and no one has come to me and expressed disappointment.

What is Prime Minister Narendra Modi's brief for you?

The PM has given lot of importance to the railways because it means a lot for the country's development. He has given me a formula on how to deal with insufficient funds and mobilise resources. I am moving in that direction.

Are CMs happy with your budget?

I assume so. I have also written to all CMs to provide us land free of cost and share half of the project cost. The projects will lead to overall tourism development in states. I will soon get in touch with CMs and if necessary, call for a meeting.

How serious are your land acquisition problems?

After the new land acquisition act, even those whose land was acquired earlier are raising issues. The social impact assessment procedures are lengthy and take a lot of time. The procedures need to be cut. On the other hand, we are facing problems to acquire land in states affected by Naxal activities. We are finding it difficult to go ahead with land acquisition in parts of Odisha, Chattisgarh, Assam, Bihar etc.

How were your surprise visits to stations in Karnataka on July 13?

I visited railway stations in Bangalore, Mandya and Mysore without informing the media. I noticed some shortcomings, like the women's toilet being locked at Mandya station. I have told divisional railway managers to visit one station per day and inspect things like cleanliness, catering and passenger amenities. We can improve many things without much need for funds.

You have announced many new trains, but are these sections not already saturated?

I have introduced services only where there is no congestion on the network. Kerala, for example, has complained that the Railway Minister is not in its favour. But traffic congestion is high in Kerala and I could not have done much there.

There is a view the railway subsidies don't always help the deserving...

I agree that we need to target railway subsidies better and limit them to the deserving sections of travellers. But I am not touching the subject now. There is no proposal to review it now.